The US sportswear giant has put in a £285m bid for the UK's Umbro. If successful, Nike will immediately overtake Adidas in terms of global dominance.
On Tuesday, Nike outlined an agreed 195p-a-share cash offer for Umbro, the replica kit manufacturer favoured by the England football team. It also supplies kit to the national teams of Ireland, Sweden and Norway, six English Premier League teams, and more than 100 other professional teams around the world.
Nike says it plans to operate Umbro as an independent, UK-based subsidiary, like the Converse brand. Umbro's share price has risen 15% following the announcement.